BackAlkem Labs to launch IPO on 8 December
At the upper end of a price band of `1,020-1,050 per share, the firm expects to raise `1,350 crore
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Mumbai: Pharmaceutical firm Alkem Laboratories Ltd on Tuesday said it will launch its initial public offer (IPO) on 8 December. The offer will close on 10 December.
At the upper end of a price band of ₹ 1,020-1,050 per share, the firm expects to raise ₹ 1,350 crore.
The promoters will dilute 10.75% of their stake through the offer for sale of shares. The company will not be raising any primary capital.
According to pharma market researcher IMS, Alkem is the fifth largest pharma company in the domestic market. The firm is engaged in the development, manufacture and sale of pharmaceutical and neutraceutical products.
For fiscal year 2014-15, Alkem’s domestic and international operations accounted for 74.7% and 25.3% respectively of the net revenues from operations. In fiscal year 2014-15, it reported a revenue of ₹ 3,177.3 crore, up 19% over the previous year’s ₹ 2,672.9 crore. In 2015, it reported a net profit of ₹ 437 crore against ₹ 440.2 crore the previous year.
Alkem’s consolidated revenue rose at an annual rate of 22.3% from fiscal year 2011 to 2015. The firm’s international business contributes around 25.3% of its revenue, while the rest comes from the domestic business.
Alkem has a total of 16 manufacturing facilities, with 14 manufacturing facilities at five locations in India and two in the US.
The company spends 5% of its revenues on research and development and has a team of 480 scientists.
According to Sandeep Singh, joint managing director at Alkem Laboratories, the firm will look at acquisition opportunities in India and the US going ahead. “In India, we would like to acquire a business in the chronic diseases space," he said.
Apart from focusing on the domestic business, the company would also like to focus on and grow its business in the US, Singh added.
Nomura Financial Advisory and Securities (India), Axis Capital Ltd, J.P. Morgan India and Edelweiss Financial Services are managing the IPO.
Alkem’s IPO coincides with that of diagnostics firm Dr Lal Pathlabs, which plans to raise ₹ 632 crore through its IPO.
So far this year, 18 firms have raised around ₹ 11,000 crore through the IPO route, according to data from Prime Database, a primary market tracker.
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